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Nasdaq-listed Cognizant Technology Solutions Corp. expects its full year 2022 revenue to grow 8.5-11.5% in constant currency to $20.0-20.5 billion, its highest-ever annual revenue outlook, the company said in a statement.
The Teaneck, New Jersey-based firm posted a 14.5% rise in revenue in constant currency from the year-ago period to $4.8 billion for the fourth quarter ended December, its highest-ever quarterly revenue. The company follows the calendar year.
In comparison, for the December quarter, Tata Consultancy Services Ltd’s (TCS) dollar revenue grew 15.4% annually in constant currency to $6.52 billion, while that of Infosys Ltd grew 21.5% to $4.25 billion.
For the full year 2021, Cognizant reported a 10% year-on-year growth in revenue to $18.5 billion, marking the company’s return to double-digit annual revenue growth for the first time since 2015.
The company’s digital revenue grew 20% annually and contributed 45% to the total revenues for the December quarter as digital bookings continued to grow. It continues to focus on its priority areas of digital engineering, artificial intelligence (AI) and analytics, cloud, and internet of things (IoT).
“I’m proud of Cognizant’s broad-based progress over the past year. We successfully executed our strategy by meaningfully enhancing our digital portfolio, strengthening our international presence, and helping our clients be successful," said chief executive Brian Humphries who will complete three years at the helm of Cognizant in April this year. “We enter 2022 with momentum and confidence that our talented employees position us to capture the substantial market opportunity."
Revenue from financial services grew 18.8% in constant currency from a year-ago that included a positive 900 basis points impact from its acquisition of Samlink and the benefit of recently completed acquisitions. Both banking and insurance growth improved, driven by demand for digital services. This was partially offset by clients' continued focus on cost optimization of supporting their legacy systems and operations.
Healthcare revenue grew 8.2% annually in constant currency, led by life sciences, which was driven by increased demand for digital services. Revenue growth among healthcare clients was driven by its integrated software solutions.
Products and resources revenue grew 18% annually in constant currency, which included the benefit of recently-completed acquisitions and revenue growth driven by clients' adoption of digital technologies. “Demand among manufacturing, logistics, energy and utility clients remained strong and we have seen sustained demand throughout 2021 across retail, consumer goods, travel, and hospitality following the negative impact from the pandemic in 2020," Cognizant said.
Communications, media and technology revenue grew 13.1% from the year-ago period in constant currency. Revenue growth included the benefit of recently-completed acquisitions and continued strong demand from technology clients.
Cognizant onboarded a record 33,000 new college graduate hires in India in 2021 taking its global headcount to 330,600. The voluntary annualized attrition rate reduced to 31% in the December quarter from 33% in the preceding three months.
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